The taxpayer might be set to pay Bidco owner Vimal Shah Sh. 113 million in legal bills incurred during tribunal proceedings over the collapsed 10,000 kilometres roads project.
This is after Vimal’s Hemby Holdings Limited, and its Singaporean partner ITNL International, gave the Kenya National Highways Authority (KeNHA) the hefty bill after successfully challenging one of the tender proceedings for the 10,000 kilometres roads project.
The project had collapsed after the government failed to secure funding from commercial banks.
According to a local daily, the Public Private Partnership Petition (PPPP) Committee has issued orders compelling KeNHA to bear the legal costs ITNL and Hemby incurred while challenging the award of a tender for construction of 175 kilometres of roads in Bungoma, Kakamega, Trans Nzoia, Busia and Siaya counties.
“KeNHA will be forced to pay exorbitant and unjustified costs to the tune of Sh113,626,400 should ITNL and Hemby proceed with the taxation of costs which were unlawfully and irregularly awarded by the PPPP Committee in excess of jurisdiction,” states fresh court proceedings filed by KeNHA at the Milimani High Court seeking to challenge the PPPP Committee’s authority to order one party to settle its opponent’s legal bills.
The construction deal worth $47 million (Sh4.7 billion) was awarded to H Young, a construction firm associated with billionaire businessman Naushad Merali, before ITNL and Hemby challenged the award.
Vimal, his father and brother each have 33.3 per cent shareholding in Hemby, giving each of the family members an equal stake in the firm, and its subsidiary—Bidco.